Big SBA 7(a) Loan Update Alert for Business Buyers (Effective June 1, 2025)

If you’re acquiring a business with SBA financing, here are the most critical updates from the new SBA SOP###-###-#### effective June 1st, 2025): • Minimum 5% cash equity injection required (seller notes can only cover the other 5% if on full standby for life of loan—no payments allowed. 2 year standby seller notes no longe qualify towards equity). • Partial buy-ins with rollover equity must be structured as stock purchases (asset purchase structures no longer eligible). • Sellers retaining <20% must personally guarantee the full loan for 2 years. • Personal liquidity limits eliminated—lenders may consider global cash flow (spousal/rental income), but won’t disqualify you for having too much liquidity. • CPA-reviewed financials acceptable if tax returns are unavailable or insufficient. These updates aren’t final yet, but historically, SBA rarely makes major changes once drafts are released. Plan accordingly! The new equity injection requirements—especially the shift from being able to use partial standby notes to now only being able to use full standby notes - and the introduction of a mandatory 5% cash component—represent significant changes for buyers structuring SBA deals and might lead to a lot of busted deals. If you need help quickly financing via the old SOP, I have a few lenders that are willing to move fast and close deals before the June 1st deadline. Technically if you already have a SBA PLP number assigned and pulled in the system then the bank can technically fund based on the older pre June 1st SOP. We would love to help you with your SBA loan. We work with all the major SBA lenders. The bank pay us after your loan closes, so this is a 100% free service for you. Depending on the DSCR, I think this deal might qualify for pristine pricing (7.99% fixed). You can reach me here or directly at redacted You can also click here to schedule a meeting with me: https://cal.com/ishan-jetley-3d73m8/30min. Look forward to chatting!